German firm sees long-term prospects in RI

German firm sees long-term prospects in RI

JAKARTA (JP): German steel company Ferrostaal AG reported on
Tuesday an 80 percent decrease in its revenue in Indonesia last
year to DM50 million (US$28 million) in 1998, due to the sluggish
domestic market.

"We have to make up our loss in Indonesia with our business in
other countries," Chairman of Forrestaal Klaus von Menges told a
press conference on Tuesday at the German technology fair
TECHNOGERMA '99.

However, Menges said that Ferrostaal still sees long-term
business prospects in Indonesia. He predicted Indonesia's economy
would recover in two to three years' time.

Ferrostaal has for a long time worked in cooperation with the
Indonesian steel and shipbuilding industry.

Ferrostaal was involved in state-owned PT Krakatau Steel's
turnkey project to build a sponge iron plant between 1990 and
1994.

Other Ferrostaal projects in the 90s included a railway
rehabilitation undertaking in West Sumatra for state railway
company Perumka, numerous container vessel transport facilities
for state shipbuilder PT PAL and a few projects with private
Indonesian companies.

Ferrostaal also has interests in a number of joint-venture
companies: PT Samudra Ferro Engineering, focusing on management
consultancy, PT Prinpak Perdana, involved in after sales service
and maintenance for manufacturing industries, power generation
company PT MAN Pindad, and PT Kahardjaja, working in the printing
industry.

Ferrostaal is one of the 194 exhibitors at the German trade
and technology fair called TECHNOGERMA Jakarta '99, being held
from March 1 to March 7 at the Jakarta Convention Center.

The exhibition is organized by the German Federal Ministry of
Economics, which is financing the event, as well as the
Exhibition and Trade Fair Committee of the German Trade and
Industrial Association, with the support of the German-Indonesian
Chamber of Industry and Commerce in Jakarta. (02)